ER's boss Mike Heap said there were already plans to bring out programmes that mixed UK and US characters.

He added that the move would give ER greater US exposure and help it expand into markets such as China and India.

McBoing Boing

"We want characters better known in the US - like Dick Tracy - to be brought the other way," Mr Heap told the Reuters news agency.

"It wouldn't surprise me if in the future Postman Pat, Rupert Bear and Lassie all appear in the same movie."

He added that that company already had plans for an animated meeting between Lassie and Postman Pat's cat Jess.

Analysts called the acquisition a bold move, and ER's shares had dipped by 2.5% to 29.50 pence in lunchtime trade.

ER will have a library of about 8,700 episodes of children's programmes after the purchase, including characters such as Basil Brush, Casper the Friendly Ghost, Lone Ranger, George of the Jungle, and Gerald McBoing Boing.

Explaining the motivation behind plans to expand into new markets, Mr Heap said that "children's products are like the music business - they can travel all over the world".

"There's not much different between kids in Beijing and kids in Bolton - they want to be happy and amused," he said.

The deal will be a mix of cash and shares, and will require approval by ER shareholders at an extraordinary meeting scheduled for 8 January.